Chinese AI wave hits Wall Street: Nvidia loses $500 billion as DeepSeek shakes US tech market

DeepSeek's cost efficiency is praiseworthy, but the privacy implications of its data collection would raise significant concerns,

said Saeed Rehman, senior lecturer in cybersecurity and networking at Flinders University

It is interesting that this breakthrough was achieved not by government-backed research institutes and large [state-owned enterprises], but by a hedge fund with no government subsidies,

noted Zhiwei Zhang, president and chief economist at Pinpoint Asset Management

This situation may evoke similar concerns to those raised for TikTok, where data privacy and security have been hotly debated,

he added

To be completely fair, this happens in every scenario. Competition is a real thing, and when it's extractable information, you're going to extract it and try to get a win,

Rao said

As the leading builder of AI, we engage in countermeasures to protect our IP, including a careful process for which frontier capabilities to include in released models,

the company said in a statement

It's impossible to stop model distillation when you have open-source models like Mistral and Llama. They are available to everybody. They can also find OpenAI's model somewhere through customers,

said Umesh Padval, managing director at Thomvest Ventures

Jonathan Rosspresenter and film critic

That's not sufficient, because people can find ways to get around it,

Ross said

I do not believe that DeepSeek was done all above board. That's nonsense,

Lutnick said

To be clear, they're not a way to duck the competition between the US and China,

Amodei wrote

In interviews they've done, they seem like smart, curious researchers who just want to make useful technology,

Amodei wrote, about DeepSeek

Mark Zuckerbergmeta CEO

It's a huge geopolitical competition, and China's running at it super hard,

warned Facebook titan Mark Zuckerberg on the Joe Rogan podcast

America holds the lead in the AI race -- but our advantage may not last,

it warned, calling for government help in AI chip production, streamlining regulations and beefing up cybersecurity against national adversaries

Chuck Schumersenate Minority Leader

If America falls behind China on AI, we will fall behind everywhere: economically, militarily, scientifically, educationally, everywhere,

the US Senate's top Democrat Chuck Schumer said Tuesday

Governments are starting to realize that if they're going to attract data centers, AI factories, and wider technology companies into their countries, they have to start removing the barriers to renewable energy,

says Mike Hayes, head of climate and decarbonization at KPMG

If you think like a venture capital investor, you're betting 1 or 2% of incremental emissions, but what could the payoff potentially be

asks Cully Cavness, co-founder of Crusoe, an AI infrastructure company

We're just scratching the surface,

says Jason Bordoff, who runs the Center on Global Energy Policy at Columbia University about the implications of AI for emissions

Until now, AI has been defined more by largesse than finesse,

Crane wrote to clients

We know [China]-based companies – and others – are constantly trying to distill the models of leading US AI companies,

the OpenAI spokesperson said

Should the DeepSeek AI funding model prove sustainable, the AI tokens or projects that will stand the test of time will align with these models to bring users a cheap, functional AI solution,

Shadid projected

While temporary capitulation might take a short while, a comprehensive rebalancing is imminent,

Shadid said of the recent events that took place around the crypto market since DeepSeek's crash-landing in the tech space